Auto component sourcing in a global world

To enjoy the cost advantages of global sourcing, firms must take a long-term perspective and make lasting commitments

Supply Chain Excellence in Retail

Well-stocked shelves, lean inventories, and low transportation and labor costs - this is not a utopian vision of the future, it's the real consequence of excellence in supply chain management today. In one of the largest Europe-wide studies of supply chain performance in retailing ever conducted, a team of authors from the University of Cologne and McKinsey & Company investigated the supply chains of over 30 European retailers. Jointly with the participants, the authors measured the companies’ supply chain performance, reviewed the concepts each company has implemented, and discussed the critical supply chain issues that the participating managers plan to work on in the next five years.

1/1/2006 | Tags: Supply Chain Management

The Race to Master Automotive Embedded Systems Development

The global auto industry's love affair with embedded systems appears to be in jeopardy. While embedded software enables 70 to 90 percent of all automotive innovations worldwide, half of all vehicle defects are electronic related – a growing trend. Automotive engineers lack a structured, holistic approach that they can use to tackle the challenge of embedded systems' increasing complexity. Filling this gap was a major driving force behind McKinsey & Company's Global Embedded Systems Initiative. The goals of the initiative were threefold. The first goal was to establish a methodology to measure embedded systems performance in terms of productivity, quality, time-to-market, and life cycle cost. The second was to identify the necessary levers for achieving best practices within the four maturity areas of embedded systems – specification, architecture, processes and tools, and sourcing. And the third goal aimed to construct a decision-making logic that would allow managers to link practices to performance metrics, i.e., an optimization tool.


Journey to Lean

Lean management is back on the agenda. The management method that steered many major organizations back to the path of growth in the early '90s is now making a comeback. The authors contributed to this development with their book "Journey to Lean", published in 2004, in which they describe how companies can make lean practices stick. A German edition has now appeared under the title "Unternehmen Lean. Schritte zu einer neuen Organisation" ("The Lean Company. Steps Towards a New Organization") and has been joined by a French version ("Objectif Lean: Réussir l'enterprise au plus juste : enjeux techniques et culturels") as well as a Chinese edition.


How to go global

This brochure summarizes the results of an extensive study on global production networks jointly conducted by McKinsey & Company and the Institute of Production Management, Technology and Machine Tools (PTW) at Darmstadt University of Technology.


Management Practice & Productivity:
Why they matter

Good Management is the Most Important Driver of Productivity Around the World. This document summarizes the principal findings of new research from McKinsey & Company and the Centre for Economic Performance at the London School of Economics, based on a survey of over 4,000 mid-sized manufacturing firms in the UK, continental Europe, USA and Asia.


Beyond the Labor Cost Frontier

Car industry purchasing departments face enormous pressure to reduce a vehicle's cost base. Global sourcing is one of the most attractive ways to ease this pressure. Not only is demand for parts sourcing from low-cost countries (LCCs) greater than ever; the conditions for companies to effectively source from them are also much more favorable. To better understand this evolving opportunity, McKinsey & Company's Automotive & Assembly Global Sourcing Initiative has conducted extensive surveys of car companies and automotive parts suppliers, interviewed experts in the field, and leveraged various cost databases developed by McKinsey and others.


Planning and Operating Logistics Networks

Supply chain management (SCM) is currently one of the most credible approaches to the holistic, process-oriented planning and management of large-scale multi- or inter-company networks. As most companies have already optimized their production processes internally, managers who move to the next level and look at a company's logistics networks can open up a new treasure trove of substantial savings.


McK Wissen 16 - Logistics

Logistics has long since been more than transporting something from A to B - it is the central element in a factory whose components are scattered around the world. "The precise management of a global logistical chain – from advance suppliers to manufacturers and carriers, to production warehouses, transshipment points, and sales warehouses, and finally to customers – is a prerequisite for smooth model ramp-ups, high delivery capability, and quick response to customer demands," write McKinsey partners Carl-Stefan Neumann und Martin R. Stuchtey.


McK Wissen 05 - Operations

Good is not good enough – we have to keep getting better. This is the principle of operational excellence. Optimizing processes saves time and money and increases company value. But this is easier said than done. In "Operations," the fifth issue of McKinsey's award-winning magazine McK Wissen, we show how companies have succeeded in this difficult task – in manufacturing, purchasing, and product development.